Strategy Raises Cash Reserves to $2.55 Billion, Enough to Cover 17.4 Months of Dividends

Strategy, the publicly traded company with the world’s largest Bitcoin holdings, unveiled a digital credit capital framework aimed at boosting cash reserves and strengthening dividend capacity while maintaining its long-term Bitcoin holding strategy.

Executive Chairman Michael Saylor wrote on X on June 29 that Strategy had increased its dollar reserves to $2.55 billion, enough to cover 17.4 months of dividend payments.

According to Saylor, the dollar reserves can be used only to pay dividends and interest expenses. Strategy plans to maintain reserves equal to at least 12 months of payments.

Strategy also raised the STRC dividend rate by 0.5 percentage point, bringing it to 12.00% starting with the July 2026 record date. The rate will be reviewed monthly, Saylor said, adding that the company’s goal is for STRC to trade at $99 to $100 over the long term.

The company also established separate buyback programs of up to $1 billion for digital credit securities and up to $1 billion for MSTR common stock. Saylor said the move would give Strategy flexibility to repurchase its securities on favorable terms during periods of market disruption. Funding for those buybacks will not come from the dollar reserves.

Strategy also introduced a Bitcoin monetization program. The company said it may sell Bitcoin holdings if needed to build dollar reserves, pay dividends and interest expenses, and fund repurchases of digital credit securities and MSTR. The cap on Bitcoin sales for the purpose of increasing dollar reserves is $1.25 billion.

Saylor said Strategy’s $2.55 billion in dollar reserves, combined with $1.25 billion of Bitcoin monetization capacity, gives the company total dividend coverage capacity of $3.8 billion, equivalent to 25.9 months.

He also said Strategy would remain cautious about issuing MSTR, particularly if the stock trades at about 1 times its Bitcoin net asset value.

Strategy said the framework is a capital management system designed to strengthen the stability of its digital credit products, improve liquidity and maintain long-term Bitcoin exposure.